How Much Does It Cost to Build a House in Australia ?

Most Australians who want to build a house for the first time usually do not know how much money they will require to construct their dream house. There are a lot of factors to consider when determining the exact cost to build a house. 

Depending on the home's design, its size, the building materials you use and the construction company you choose, the cost of building a house will vary dramatically. Expenses also differ based on where you live. 

Construction costs in some cities are lower than in others. In this article, you will learn how much it costs to build a house in each territory and state in Australia. So, keep reading to learn more.

Costs You Need to Take into Account When Building a New House

There is a possibility that the price to build a house will be less than buying one. However, you may have overlooked a few unforeseen costs, which you should include in your budget. Here are some hidden costs that you must consider when building a new home to be easier for you.

• Soil & Contour Testing may cost between $1,000 to $2,000.
• Architectural and engineering plan may cost between $3,000 to $5,000 or higher depending on the plan. 
• Site Preparation Costs may cost between $10,000 to $70,000.
• Land Registration may cost between 3 to 4% of the property value.
• The flooring may cost between $5,000 to $10,000.
• Driveways may cost between a few hundred dollars to several thousand dollars.
• Landscape projects for a large backyard can cost anywhere from $5000 to $25,000 or even higher. Landscaping costs per hour typically range from $40 to $55.

Soil & Contour Testing

The construction of a house involves much more than obtaining some woods and other construction stuff from the local store and starting the construction process. A contour survey and a soil test are two of the prime things builders need to do before starting building.

A contour survey and a soil test are estimated to cost between $1,000 to $2,000. If you have soil issues or build on a slope, you may require extra fees.

Architectural & Engineering Plan

An architectural and engineering plan includes drawings of floor plans, site plans, cross-sections, and elevations of the house you are going to construct. The cost of plans alone can range from $3,000 to $5,000. 

This cost may even get higher depending on the plan. Sometimes it doesn’t include post-production revisions, assistance with project management, and construction help. You will initially have a set of plans to use as a basis for your construction, which you can then take to a builder for their approval.

Site Preparation Costs

Site preparation is often the most expensive part of building a new house. This cost varies significantly from project to project and depends on different factors, such as the soils and contours. 

Depending on the job, the cost could range between $10,000 and $70,000, including the cost of excavating and demolition.

Land Registration

Some blocks of land might have already been subdivided and registered. Nonetheless, if you're considering building on newly acquired land that's not yet registered, there might be additional fees involved. It may involve installing plumbing and electricity.

Flooring

Building quotes sometimes do not include the flooring in your home. The floor may be the foundation on which you will build your home. It then leaves you with the decision of what kind of flooring to use. There are many options to choose from, such as carpets, wooden floors, and tiles.

Please make sure you discuss your flooring needs with your builder so that he can give you a quote for what you want. If you're on a tight budget and building on a well-located block, a basic driveway and basic flooring should cost you around $10,000.

Driveways

The price of a house construction typically includes only the building itself. It means you will have to pay for things outside of the building, such as driveways, on top of what you already pay. This cost could be inexpensive or highly expensive based on the type of driveway you want and it’s length. 

Consider not getting a concrete driveway built right away to save money, and try to build it yourself with less expensive materials until you can afford a concrete driveway.

Landscaping

There are several benefits of creating landscaping that is well designed and neatly. Landscaping will provide a private outdoor sanctuary. 

Investing in landscaping can add substantial value to your home over the long term. You should consider setting aside between $20,000 and $40,000 when building on a new lot that costs $400,000.  

How Much Does It Cost to Build a House Per Square Metre in Australia?

There are a lot of homeowners and builders who mention the cost of building a house according to dollars per square metre. A typical method of calculating this is by taking the total build cost from the contract and dividing it by the total build area. 

However, remember that a kitchen or bathroom's price per square foot can be higher than a vacant space. Therefore, when you are trying to create a large bathroom or kitchen space in your home, your calculations can quickly become inaccurate. 

In Australia, house building costs can differ significantly depending on the house style and location. In 2021, an average house in Australia used to cost around $313,800 to build. However, the price of a house of average size can differ between $271,000 and $1,124,550, depending on its location and other factors. 

Nevertheless, it is important to consider the cost of a house, so here is a rough estimate of what a different type of house could cost per square metre in each state and territory of Australia.

• Building a house per square metre in New South Wales may range between $1,780 to $5,100.
• Building a house per square metre in Victoria may range between $1,720 to $3,300.
• Building a house per square metre in Queensland may range between $1,800 to $4,000.
• Building a house per square metre in South Australia may range between $1,580 to $3,450
• Building a house per square metre in Western Australia may range between $1,400 to $2,700.
• Building a house per square metre in Northern Territory may range between $1,800 to $2,800.
• Building a house per square metre in the Australian Capital Territory may range between $1,700 to $3,400.

However, to achieve your goal of building a dream house, you can also apply for a construction loan. A construction loan provides funding for your construction project as you require it. 

You can also use a borrowing power calculator by NG Loans to know how much you can borrow. Or calculate your monthly repayment amount using the NG Loans monthly repayment calculator.

Average Cost of Building a Three-Bedroom House

Having an idea of the price per square metre will be helpful. However, what is the average house size, so you can plan for the costs?

As reported in the CommSec Home Size Report, Australia is home to some of the world's largest houses, bigger than the United States. 235.8 square meters are the average size of new houses built in Australia in 2020, according to their research. If we were to calculate the average building cost based on the above estimates, it would be:

• A three-bedroom home starts at $268,800
• A four-bedroom home costs $481,2680 or more

It can vary widely in price to build a three-bedroom house, depending on the quality of the finish, the inclusions, and whatever else the builder needs.

Financing for Your House Using Construction Loan

Getting a construction loan is what you need to do if you want to borrow money for your home construction. With these loans, you can buy land and construct your home within a set time.

A construction loan is structured differently from a regular mortgage; you do not acquire a large lump sum from your lender when you take out the loan. 

As you progress through the construction process, your lender will estimate how much money you will need to pay your contractor, and part of that amount will be available over time. This type of loan withdrawal is known as progress draws and is calculated as a percentage of the total mortgage amount.

Construction Loan Pre-Approval by NG Loans

You first need pre-approval to get the construction loan. If you get a pre-approval, you can be assured of accessing the mortgage when you need it. However, most Australians struggle to get the pre-approval because of a lack of information. 

If you are also struggling with the construction loan pre-approval, do not worry because experts at NG Loans are already there to help. You can contact NG Loans to arrange a free consultancy regarding loan pre-approval. 

The team at NG Loans is an expert at the policies and procedures of construction loans and ensures you get pre-approved at the best rate.

Why Choose NG Loans for Construction Loan Pre-approval?

The majority of Australians have no idea how to apply for a construction loan. The experts at NG Loans can assist you if you are one of these people. NG Loans is your one-stop shop for getting a construction loan approved fast and easy.

NG Loans will help you to find a lender with low deposit requirement for construction financing that you can use to build your dream home. Construction loans are our specialty at NG Loans. We offer honest and ethical advice from NG Loans' experienced staff to help you reach the desired result. 

NG Loans also provides a deep understanding of bank and lender lending policies and guidelines. NG Loans offers you the best possible mortgage financing so you can focus on your home without worrying about your financing.

Secret Factors Influencing the Cost of Construction

Building a house is a costly undertaking, so you need to figure out how much it will cost before starting it. It can be challenging to determine the approximate amount you will spend on a house construction project since you must weigh many factors. 

Following are some vital factors that can influence the construction cost of a house. Knowing these factors will make it easier for you to predict the total cost.

Site Condition

The construction costs can rise or fall depending on the construction site's condition. The conditions that influence the cost of building a house are wetlands, poor soil conditions, endangered species habitats, etc.

The site's location will also impact the overall cost of the project. For instance, if you were to build your house in a highly valuable area, you would probably build a more expensive property than if you built a low-value property in a lower-valued area.

Labour Costs

Labour costs on a construction site can vary from place to place. Most of the time, urban areas have higher labour costs than rural areas. It is mainly because urban areas have higher living costs than rural areas.

Project Size & Schedule

Construction cost estimates are highly influenced by the time it takes the contractor to complete the project. Unusually, an increase in the indirect costs of construction results from an unexpected delay in the project. Typically, large construction projects involve a large workforce and considerable materials. 

Thus, construction costs would vary greatly depending on the project's size. For example, when it comes to building a 1000-square-foot house, development costs will be lower when compared with building a 5000-square-foot house.

Materials

Locally sourced building materials and products are almost always less expensive than those bought from a faraway place. If your building materials and products have to travel a long distance to reach your site, you should consider this. 

For example, shipping and delivery costs will be higher for a certain marble from Greece than for a Tennessee marble or any product that you can get locally. So, it will be less expensive to construct a site if the material is available close to the site, but if they present at farther distances, it will be more expensive.

What to Look out for When Building a New House from Scratch?

The best thing about building a new home is that you can customize it exactly how you want it. The building of a new home involves a vast array of things to consider that you may not anticipate. Following are some of the factors to consider when building a new house from scratch.

Planning

Construction is all about planning, and planning is by far the most vital step in the process. So, it would help if you plan your home correctly. In what direction will the house face? How will it be laid out, and how will the rooms flow? 

How many power outlets do you plan to install, and which kind of lighting will you use? You can plan out the design of your home using a variety of valuable tools available. 

You can also create mock floorplans. If you are in doubt, you can always use old-fashioned graph paper. It's also a good idea to keep track of design ideas that you like and wants to simulate.

Finishing Costs

There is a high likelihood that the building process will cost more than you think. There may be items missing from the estimate provided by your builder. For example, your builder might not add the cost of NBN hookups and window treatments. 

Estimates may also not include certain items, including landscaping and outdoor concrete work, letterboxes, which you will need to buy separately. Usually, these costs are called finishing costs, and you can expect them to range from 15-25% of your entire budget. 

You may also have to pay for site preparation costs, as well as fees associated with a planning application. Furthermore, you must also budget for unforeseeable events and unexpected add-ons. 

For example, if you did not like one of the fittings or materials, or they did not match your expectations, then you may want the option to change your mind.

Cost-Saving Tips When Building a House

One of the costliest financial decisions you can make is building a home, which is why it's essential to find ways to save money.

Additionally, you should consider the areas where a cheaper option is not advisable. Following are some tips that will help you save money when building a house.

Construction time 

The build itself may be the biggest cost savings in building a home. If you do your math, choosing the right material along with the building speed can save you a lot of money.

There is usually a cost increase associated with a faster build, but one must consider the costs of holding the property due to a faster build.

Saving Through Smart Design

Make sure that the perimeter of the house is as regular as possible. The build costs are much higher when there are a lot of indents and direction changes around the perimeter. The roof shape is also essential. Simple shapes cost less than hip-and-valley constructions.

Whenever possible, choose a single-story home, as two-story homes tend to be more expensive. If your block requires you to build up, then work with designers with experience with multi-level building to build your two-storey home to your ideal dimensions and cost.

Ensure that you use traditional window and door sizes from a well-known range. Building this way makes construction easier, and big suppliers offer better after-sales service if you need spare parts down the road.

Make sure that there are built-in cabinets, wardrobes, and storage areas. You can reduce the amount of money you would ordinarily spend on buying free-standing units, as well as save a lot of space in your home.

Render the Exterior

Nowadays, an increasing number of houses in Australia are being built with rendered exteriors, and with good reason: it is a cost-effective method of changing a house's exterior appearance. In addition to being very cost-effective, foams and renders are lightweight and easy to install, so labour costs remain low.

Unfortunately, rendering properties is such a popular practice today that they are no longer unique, so rendering your property may save you money but will not necessarily add value.

Saving Money on Fixtures & Finishes

It is possible to keep costs under control by sticking to conventional building methods. The extra cost you will be asked to pay will depend on whether you want polished concrete floors or concealed gutters.

There are also fittings and finishes to pay for in the bathrooms and kitchen. There are features such as marble benchtops, stone-composite bathrooms etc., which cost tens of thousands of dollars but, when used properly, are more than worth the investment.

Choosing the Right Builder for Your New House

There are many choices you have to make when building your home. However, selecting the right builder is one of the most important ones. No matter who you go with, you will end up having a long-term relationship with your builder that will last for several months.

Therefore, you should make the right choice when choosing the builder to prevent future issues. Before selecting a builder, here are a few things you need to keep in mind:

• Type of design you want: By looking at the builder's past work, you can determine if their design style matches your needs. If you want something outside a builder's capabilities, you should look elsewhere. Builders are often great at designing one type of house; however, try another builder if you require something outside of their expertise.
• Check the portfolio: You must take the time to check the past houses that the builder has built for their customers. It is best to hire a builder who has an excellent track record of building. If you wish, you may examine the resale statistics for some of the builder's previous homes.
• Builder personality: You will be working with your builder for a long time. As such, you should be at ease working with your builder. Communication is also essential between you and your builder. Communication between a builder and you are often an issue, which is true for their contractors.
• Certifications: Ensure that the contractor you select for your house building is properly licensed and insured before deciding on them.
• Find or ask for references: Before hiring a builder, look at what he has previously accomplished. Is the work that past clients have received satisfactory? Before signing the contract, please make sure that you have checked the builder's references. You must choose a builder that is not the subject of any complaints. Additionally, it is essential to ensure that the warranty and the service are of high quality.

Conclusion

The cost of building a house in Australia may vary from state to state. Also, many factors such as house type, design, size, etc., can affect the cost of building a house. However, most people find it quite challenging to build a new house from scratch than buying an already built house. 

You should remember that buying an existing house can cost more than building a new house. A new house can also be designed according to your requirements. 

So, you should prefer building a new house as per your requirement, and this article will help you get a better estimate of the total cost that you might require for the construction process.